GOLD (COMEX) gold

Originally posted by eshmun ↑

What if TBR or NST JV suffers a pit wall collapse. Well that would be highly unlikely as the JV are underground miners. The mines have already survived an earthquake in 2010 that measured 5.o on the Richter scale and destroyed buildings in Kalgoorlie/Boulder because they adopt a very conservative paste fill mining method. In the very unlikely event that some disaster took out all four underground mines my investment in TBR is pretty much backed entirely by the gold bullion the company holds at the Perth mint. The price of that stock would need to fall a very long way before I would raise a sweat as I've owned it for 20 years. As for NST I'm a new comer to that company as I haven't had the confidence to invest in it until relatively recently. It is a diversified gold miner so can survive a negative outcome at one of its mining operations until such issues are resolved. I'll note that if you plot a 365 year moving average for the life of trading for both of these companies you will find that the resultant lines you get form a constant unbroken upward slope and I expect this to continue for at least the next decade based on current performances. You won't find many companies on ASX that exhibit this property.

I have a roof over my head that is fully paid and my family doesn't scrape for a living so unless we literally get to a situation of marauding hoards doing home invasions I've got little to worry about. The only event that would scare me is if the price of gold rose too high in response to a collapsing currency and the government brought in gold confiscation laws. I'd say if this was to happen my gold share holdings would be looking pretty healthy long before that and I would sell way before we reached the lofty gold prices predicted by some pundits. At that stage I'd put any proceeds into more fixed assets (bricks and mortar).

I think I understand the risks I face AJ. Eshmun

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Hi Eshmun

What did you see in TBR that made you buy it 20 years? I'm not sure what it was worth 20 years ago but I'm assuming you must have made a killing. I think it's an unbelievable company, I never owned it directly but I did own Rand Mining which has a cross holding in TBR.

Did you consider buying RND when it got into the low thirties a couple years ago?

When I bought Rand mining it was trading for less than the gold it held at the Perth mint.

Cheers
Ivan